AIAA Houston Section Policies

At the October 9, 1997 Council meeting, it was agreed that a series of Section policies would be developed to assist in improving year-to-year communications and the application of lessons learned. The first such policies were approved unanimously and are listed below:

Development of Section Policies

Policy: The AIAA Houston Section Council shall develop and maintain policies on an as-required basis. Policies will be approved by a majority vote of the Council and maintained by the Secretary. Although the Council may agree to deviate from a given policy on a case-by-case basis, frequent deviations from the policy would be an indication of the need to update or repeal the policy.

Rationale: Developing and maintaining Section policies should allow the Section to benefit from earlier "Lessons Learned" and guide future officers and Committee Chairs in conducting successful Section activities.

Approval Date: October 9, 1997

Section Bank Accounts

Policy: The Section Treasurer shall manage a series of bank accounts for the Section’s day-to-day operations as follows:

• Checking: This account shall be used for the payment of Section expenses. Its balance shall be maintained at a level sufficient to cover outstanding checks, estimated expenses for the coming month, and to prevent any applicable service fees. No signed blank checks shall be issued from this account.
• Savings: Near-term operating budget beyond that in the checking account balance shall be maintained in an interest bearing savings account. As required, funds from this account shall be transferred to the checking account to cover estimated expenses for the coming month. The frequency of these transfers shall not subject the account to any applicable service fees. The account balance shall be maintained at a level at or above any required minimum.
• Certificate of Deposit: Operating funds determined by the Section’s Executive Council not to be needed until sometime in the future (e.g., three or six months) shall be placed for the meantime in a certificate of deposit. The Section’s Executive Council may elect to break the terms of the certificate and subject the account to any applicable penalties if the funds are required before the certificate’s maturity date.
• Postage Cash: A cash account shall be maintained at the Section’s designated US Post Office to cover mailing expenses. In April, August, and December of each year, funding shall be added to the account to cover the estimated mailing expenses between that time and the next funding addition.
• The Section’s Executive Council may elect to have some funds set aside in interest bearing bank accounts for long-term and/or special projects. The Section Treasurer shall manage these accounts so the project’s principal remains in the account until such time the Section’s Executive Council declares a need for it. The interest earned from these accounts shall be transferred to the checking account to support the payment of day-to-day operating expenses.
• Each month, the Section Treasurer shall reconcile all account balances and report these balances and the detailed transactions at the Section’s monthly Executive Council meeting.

Rationale: This policy captures the rationale behind how the Section’s bank account balances should be managed. It is intended to ensure positive cash flow, fund availability for the timely execution of payments, protection of principal, and interest income maximization.

Approval Date: November 6, 1997

Support for AIAA Travel

Policy: The AIAA Houston Section should budget for and provide funding to support having two Section officers or other representatives attend key AIAA meetings, including the annual leadership training session in June and meetings of the Region IV Regional Advisory Council (RAC). This support should include paying for airline tickets and hotel expenses, as required.

Rationale: It is very important that the Houston Section allow its leadership to take part in training, reporting, and decision-making on both a regional and national level. Although corporate support for AIAA-related travel is preferred and should be requested where practical, as long as our finances are adequate, the Section should financially support the participation of our representatives.

Approval Date: December 4, 1997

Pricing of Section Events

Policy: To stimulate member involvement and serve our membership, the AIAA Houston Section shall make it a regular practice to subsidize monthly program costs. The Council shall be free to specify the amount of subsidy and eligibility prior to each event as the budget allows. In general, the price for members and students should be set at somewhat less than the cost to the Section, while the price for non-members should be set approximately at cost. For example, we could charge members $7, nonmembers $12, and students $5, based on a $12 meal at Gilruth.

Rationale: Putting on quality catered events can be expensive. This can be a significant deterrent to member involvement. Using some of our funds to help pay for Section events is one way the Houston Section may serve its membership and encourage active participation.

Approval Date: December 4, 1997